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TL Step by Step Ltd (TC4338)
The taxpayer company was compulsorily deregistered from VAT with effect from 1 October 2013, the same date on which it had been registered. HMRC said there was no evidence the firm intended to make taxable supplies.
The business described itself as a supplier “wholesale beers, spirits, wines and liqueurs, and business consultancy services”. It appealed against the Revenue’s decision to deregister its VAT status.
The First-tier Tribunal noted the taxpayer had made two wine sales for small amounts to friends – but the products had been bought from a UK wholesaler, rather than from overseas, which did not accord with the business model.
The company did not provide purchase orders, business plans or other documentation, nor could it show it had carried out market research or advertising.
The tribunal concluded the taxpayer had “aspirations to establish a business” but they had not crystallised. The appeal was dismissed.
